Mario Gabelli

Mario Gabelli

Last Update: 10-23-2015

Number of Stocks: 833
Number of New Stocks: 44

Total Value: $15,217 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mario Gabelli Watch

  • Is GAMCO a Great Long-Term Investment?

    Over 30 years ago, legendary value investor Mario Gabelli (Trades, Portfolio) founded asset management company GAMCO Investors (NYSE:GBL). The company has $49 billion in assets under management and provides various services to its clients, which includes mutual funds, close-end funds and private partnerships. GAMCO has made Gabelli and is consistently one of the highest paid executives on Wall Street. Unlike other executives on Wall Street, however, Gabelli's various funds have returned 15%-plus over the last 30 years.

    Business overview


  • Mario Gabelli on Investment Ideas in Europe

    Mario Gabelli (Trades, Portfolio), founder of GAMCO Investors, sat down with Bloomberg to discuss his big investment ideas in Europe, as well as his views on the European Central Bank's monetary policy.

    Interview with Bloomberg:


  • Mario Gabelli Comments on Telefonica SA

    Telefonica SA (NYSE:TEF)(2.9%) (TEF – $12.10 – NYSE/TEF SM – 10.75 – Madrid Stock Exchange) has telecommunications businesses across Europe and Latin America, which constitute 51% of group revenue. Management has placed a strong emphasis on driving a return to revenue growth in the domestic Spanish market in order to stabilize margins and return to EBITDA growth. There is mounting evidence that the market dynamics are finally improving, partially attributable to better macro conditions and also to reduced competitive intensity following the acquisition of Jazztel by Orange (0.2%). Telefonica’s position in quad play has been strengthened by the acquisition of digital TV provider DTS which provides 150 channels of pay TV (including exclusive premium content) to 2 million Spanish homes via satellite. Elsewhere in Europe, Telefonica hopes to complete the restructuring of its portfolio with the pending sale of the O2 business in the UK to Hutchison 3. This will effectively leave the company with the two European core markets of Germany and Spain. The picture in Latin America is mixed. Clearly the weak economic trends in Brazil coupled with the sharp currency devaluation will continue to act as a drag on reported performance. Telefonica Brazil (0.2%) nonetheless remains the market leader with this position further reinforced by the acquisition of Global Village Telecom (GVT) earlier this year, providing a formidable fixed line presence and pathway to converged services. Telefonica has made significant strides in Mexico with revenue now growing at a high single-digit rate and margins improving. Following the sharp correction in the Telefonica share price since early August, the stock now trades at a discount P/E valuation to its peers of 10.5x.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on Level 3 Communications Inc.

    Level 3 Communications Inc. (3.1%) (LVLT – $43.69 – NYSE), headquartered in Broomfield, Colorado, is a global provider of IP-based communications services to enterprise, content, government, and wholesale customers. It operates a global services platform anchored by owned fiber networks on three continents and in more than 45 countries, connected by extensive undersea facilities. LVLT’s fiber network includes over 200,000 route miles globally (including 33,000 subsea route miles and over 60,000 metro fiber route miles). LVLT closed its acquisition of tw telecom on October 31, 2014. In July 2015, Level 3 reported slightly softer than expected revenues (largely due to continued pressure from macroeconomic and political environment in Latin America) and stronger than Adjusted EBITDA. As of 2Q’15, LVLT has realized ~$115 million in annualized run-rate Adjusted EBITDA synergies from tw telecom deal. The company plans to achieve ~70% of targeted $200 million savings from this deal by the end of 1Q’16.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on KDDI Corp

    KDDI Corp. (TSE:9433) (4.1%) (9433 JP – $22.23/¥2663.38 – Tokyo Stock Exchange), formed in 2000, is Japan’s second largest wireless operator, marketing its mobile services under the umbrella ‘au’ brand and now serving over 44 million subscribers. It also has substantial fixed broadband and CATV operations. KDDI serves 3.5 million fiber-to-the-home (FTTH) connections and is the largest cable operator in Japan, with over 5 million CATV subscriptions and market share in multichannel services exceeding 50%. In fiscal year ended March 31, 2015, a rise in the smartphone penetration rate led to robust increases in data ARPU and overall rise in au ARPU of 0.7% year-over-year. As of March 2015, KDDI’s smartphone penetration was 54%. Going forward, the company expects this rate to rise to more than 70%, commensurate with levels in the United States and South Korea. KDDI is putting in place the pillars for sustainable new growth by further developing its “3M” and “Global” strategies. “3M” refers to Multi-network, Multi-device, and Multi-use. As part of the 3M Strategy, in May 2014, KDDI launched “au WALLET”, a new platform service aimed at boosting value-added revenues through offline services. “au WALLET” acts as a prepaid e-money service with settlement function for use at physical shops. A tie-up with MasterCard means that it can be used at roughly 38 million stores worldwide. The transaction volume for conventional billing service (“au Simple Payment”) and the new “au WALLET” service amounted to ¥380 billion in fiscal year ended March 31, 2015 and is expected to rise to approximately ¥850 billion the following year. As part of its “Global” strategy, in June 2014, KDDI formed a joint venture (KGSM) with Sumitomo Corporation that entered Myanmar’s telecom market. KGSM and Myanma Posts & Telecommunications (MPT) are jointly providing telecom services in the country with significant growth opportunities (Myanmar’s mobile penetration stood at only 10% at the end of 2013).

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on Equinix Inc.

    Equinix Inc. (0.9%) (NASDAQ:EQIX)(EQIX – $273.40 – NASDAQ), headquartered in Redwood City, CA, is a provider of global data center services, including colocation, interconnection and exchange, and outsourced IT infrastructure. The company operates in 105 IBX data centers, with approximately 11 million square feet of space, in 33 markets around the world. EQIX converted to a real estate investment trust (REIT) for U.S. federal income tax purposes effective for its taxable year commencing January 1, 2015. On May 29, 2015, EQIX finalized its offer for a Pan-European data center colocation provider, Telecity (0.2%). EQIX will pay 572.5 pence in cash and issue 0.0327 shares per Telecity share. The deal that values Telecity at ~$4.1 billion (at current prices) is expected to complement and extend EQIX’s geographic footprint in Europe (extending the company’s reach into seven new markets and strengthening its presence in four existing markets), enhance cloud and network density to better serve customers, provide meaningful cross-selling opportunities, and generate significant synergies. Deal closing is expected to take place in 1H’16. On September 8, 2015, EQIX agreed to acquire Bit-isle, one of the leading colocation data center operators in Japan for ¥922 per share, valuing Bit-isle’s equity at approximately $280 million (enterprise value of $440 million). Bit-isle is the 7th largest data center provider in Japan, with 480,000 square feet of space in six data centers (five in Tokyo and one in Osaka). Acquiring Bit-isle would make the combined company the 4th largest data center provider in Japan. The deal is expected to be accretive to EQIX AFFO per share upon close and accelerates cloud and enterprise ecosystem growth and cross-sell opportunities for the company.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on DISH Network Corp

    DISH Network Corp. (NASDAQ:DISH)(3.3%) (DISH – $58.34 – NASDAQ) is the third largest pay television provider in the U.S. with approximately 14 million subscribers. As a satellite operator unburdened by local franchising requirements and wired plants, DISH can market and deliver video extremely efficiently across the entire country. As founder of the company, Charlie Ergen owns approximately 53% of DISH’s shares and lends his strategic vision to its benefit. DISH has accumulated a significant spectrum position at attractive prices and unsuccessfully attempted to enter the mobility market via the acquisition of Sprint. DISH could monetize its spectrum through a sale of the spectrum or the whole company, or, more likely, a partnership with an existing wireless operator.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on Deutsche Telekom AG

    Deutsche Telekom AG (NYSE:DTE)(3.2%) (DTE GR – $17.77/ 15.87 – Frankfurt Stock Exchange) is the incumbent German telecom provider, with substantial international holdings in Eastern and Southeastern Europe and the U.S. In Germany, Deutsche Telekom has been aggressively rolling out both fiber-to-the-home technology and its 4G mobile network in order to maintain its quality gap with competitors. This is having the desired impact on operating metrics, with, for example, a doubling of fiber subscriber net additions compared to last year. While in the short term this may be adversely impacting margins, Deutsche Telekom has arrested and reversed market share losses in Germany which is critical to long-term success. In mobile, domestic pricing has broadly stabilized and the market should begin to see the benefits of the in-market consolidation transaction between Telefonica Deutschland and E-Plus. The company’s European businesses have yet to turn the corner in terms of revenue and EBITDA with a number of the markets still under pressure from macro conditions. For much of the past two years, the Deutsche Telekom story has been dominated by the strong performance of T-Mobile US and the implied value of that asset to the parent company. The 2Q organic revenue and EBITDA gains in the U.S., of 13.7% and 22.8% respectively, were well ahead of expectations and served as the source of outperformance for the group as a whole. Beyond the convincing U.S. numbers, speculation continues unabated about possible bids for T-Mobile from any of a variety of parties. Deutsche Telekom’s shares have been amongst the most resilient in the European telecom sector, in part underpinned by a secure current return of 3.4%.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on Cablevision Systems Corp

    Cablevision Systems Corp. (NYSE:CVC)(3.5%) (CVC – $32.47 – NYSE) provides broadband, television, and phone service to approximately three million subscribers in the New York metropolitan area. An industry pioneer, CVC developed the most advanced cable plant in the country and converted over 70% of its subscribers into triple play (video, phone, and broadband) customers. After years as a potential acquisition candidate, in September 2015 Cablevision agreed to a sale to Altice for $34.90 per share in cash. The deal represents the culmination of efforts to surface value through transactions such as the spin-offs of Madison Square Garden (1.1%) and AMC Networks (0.5%) in February 2010 and June 2011, respectively.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on Cable & Wireless Communications plc

    Cable & Wireless Communications plc (CWC)(0.8%) (CWC LN – $0.84/55.57 p – London Stock Exchange) is a full service communications provider operating in the Caribbean and Panama. In March 2015 CWC completed the acquisition of Columbus International in a major in-region consolidation transaction. The shareholders of Columbus, including John Malone of Liberty, now hold a 20% interest in CWC and have appointed three non-executive directors to the company board. Among the benefits that should accrue to CWC are an improved Caribbean network infrastructure, rapid deployment of convergence products, increased distribution, an expanded geographic footprint, and enhanced B2B and B2C capabilities. Annualized cost savings of $85 million are expected to be achieved by fiscal 2017/18. Remedies to gain approval for the Columbus acquisition were confined to the pending sale of CWC’s minority stake in Trinidad and disposal of certain fiber optic assets in Barbados. Over the longer term, we view it as likely that CWC will act to further consolidate its position in the region with assets including Liberty’s Latin America and Caribbean group as a logical target. Operationally, CWC benefits from the duopoly market structure in the majority of its territories. An exception is Panama where we expect to see in-market consolidation amongst the existing four mobile operators, subject to the legal framework being amended.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • Mario Gabelli Comments on AT&T Inc.

    AT&T Inc. (NYSE:T)(4.0%) (T – $32.58 – NYSE) is the largest telecommunications holding company in the United States, serving 124 million mobile subscribers (including 110 million retail customers), 23.5 million wireline voice connections, 16.0 million broadband, and 39 million video customers (including 26 million in the U.S.). On July 24, 2015, AT&T completed its acquisition of DIRECTV, a leading satellite TV operator in the U.S and Latin America, in a cash-and-stock transaction for $95 per share. Main reasons for DTV transaction include


  • Mario Gabelli Comments on América Móvil SAB de CV

    América Móvil SAB de CV (NYSE:AMX) (2.4% of net assets as of September 30, 2015) (AMX – $16.55 – NYSE) is one of the largest mobile operators in the world, serving 288 million wireless customers, primarily in Latin America. The company also serves 79 million fixed-line, broadband, and Pay TV RGUs in Latin America, the United States, and Europe. AMX is also the largest shareholder in two European telecom operators, Telekom Austria (0.6%) (60% ownership interest) and Dutch telecom incumbent, Koninklijke KPN (0.1%) (25% interest). America Movil has been declared by Mexican regulators as a “preponderant” wireless and wireline operator and is subject to asymmetric rates in Mexico until the company reduces its market share below 50%. Impacts from asymmetric rates, increased competition in a number of AMX’s major markets, challenging macroeconomic environment in Latin America, and significant depreciation of the Brazilian Real vs. the Mexican Peso have pressured the stock year-to-date. AMX is in the process of spinning off Telesites, its mobile tower business in Mexico (~18,000 towers), and expects to receive regulatory approval by the end of 2015. The company’s strategy has been focused on investing in its 4G and fiber infrastructure in order to capture rising demand for data by improving the quality of its network in an environment with increasing competition.

    From GAMCO's Global Telecommunications Fund third quarter 2015 shareholder commentary.


  • 5-Year Lows: Loral Space & Communications, Allegheny Technologies, Alliance Resource Partners LP, United States Steel

    According to GuruFocus' list of five-year lows, these guru stocks have reached their historical low prices: Loral Space & Communications Inc., Allegheny Technologies Inc., Alliance Resource Partners LP and United States Steel Corp.

    Loral Space & Communications Inc. (NASDAQ:LORL) reached $43.76


  • Macy's Aims to Improve Growth, Signs Agreement With Luxottica Group

    Though Macy’s Inc. (M) reported a very disappointing third quarter, it recently it reached an agreement with Luxottica Group S.p.A. (LUX) to bring LensCrafters stores to as many as 500 Macy’s in the U.S. over the next three years, which will hopefully boost growth for the future.

    Macy's is an omni-channel retail organization operating stores and websites under the Macy's and Bloomingdale's brands. The company sells apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states. 


  • Mario Gabelli Buys Shares of Macy’s

    Retail stocks have been trending downward as disappointing earnings and weak holiday shopping outlooks weigh on stock values in the sector. Nordstrom (NYSE:JWN), Macy’s (NYSE:M) and Walmart (NYSE:WMT) are three retail stocks currently reporting active trading this week as values decline. All three stocks are down more than 30% for the year with Nordstrom down 31.94%, Macy’s down 39.63% and Walmart down 34.35%.

    Despite the downturn, Mario Gabelli (Trades, Portfolio) of GAMCO Investors recently upped his stake in Macy’s adding approximately 2,000 shares to his portfolio this week. Reporting its earnings results on Wednesday, Nov. 11, the retail department store beat analysts’ average earnings per share estimate for the quarter at 56 cents. Revenue fell just below analysts’ expectations at $5.9 billion versus an average estimate of $6.1 billion.


  • Insiders Buy Cheniere Energy, Sell Travelport, Sabre

    The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying/All Insider Selling to “$1,000,000+” and duration to "November 2015."

    According to the above filters, the following are the recent buys from company insiders in the past week.


  • Gabelli on How to Approach the Energy Space Right Now

    With oil back rolling over again CNBC interviewed guru Mario Gabelli (Trades, Portfolio) and prodded him for his picks in energy. Gabelli launched into a one-minute crash course on how to find great investments in the energy space in this market. His mantra is simple:


  • Bridgestone to Acquire Pep Boys

    Last month, Pep Boys - Manny Moe & Jack (PBY) agreed to be bought by tire giant Bridgestone Americas Inc. in an all-cash deal. Here's an overview of what's behind the decision.

    Why Pep Boys agreed


  • Mario Gabelli Comments on Westar Energy Inc.

    Westar Energy Inc. (NYSE:WR)(1.7%) (WR – $38.44 – NYSE) is an electric utility serving 700,000 customers in central and northeastern Kansas. WR is well positioned to grow its earnings, given a constructive regulatory environment that allows for annual rate adjustments outside of a general rate case to recognize environmental and transmission investment. WR is expanding its 6,200 miles of transmission infrastructure by constructing smaller transmission projects in Kansas, and it plans to spend $225 million per year on transmission projects, despite the recently lowered allowed ROE for transmission. On August 6, 2015, the company reached a settlement with all major parties related to its pending general rate case. The settlement proposal includes a total revenue increase of $185.1 million and the allowance of an abbreviated rate case to recover additional costs of environmental control equipment at the La Cygne and Wolf Creek generating stations not included in the rate case.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Industrials Fund shareholder commentary for third quarter 2015.  

  • Mario Gabelli Comments on WEC Energy Group Inc.

    WEC Energy Group Inc. (NYSE:WEC)(1.8%) (WEC – $52.22 – NYSE) On June 29, 2015, Wisconsin Energy Company completed its acquisition of Integrys Energy Group (TEG). The agreement valued TEG at $9.1 billion enterprise value, and consisted of stock, cash, and the assumption of $3.3 billion of debt. Each TEG share received 1.128 shares of WEC and $18.58 per share in cash. The combined company’s assets include Wisconsin Electric, the state’s largest electric utility, with over 1.1 million electric customers and 1.1 million gas customers in southeastern, east central, and northern Wisconsin, and 400,000 electric customers and 1.7 million gas customers in Illinois, Michigan, Minnesota, and Wisconsin. Management forecasts the combined company growth rate at 6%-8% in 2016 and 5%-7% over the long term, which is higher than both WEC and TEG’s standalone growth rates of 4%-6% per annum. Additionally, WEC increased its ownership stake to 60% in the American Transmission Corporation. Over the long term, we believe the ownership in ATC not only provides favorable investment opportunities, but also financial engineering optionality

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Industrials Fund shareholder commentary for third quarter 2015.  

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